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BudgetLevyCycle07
 

BudgetLevyCycle07

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Presented by David Root Superintendent of Williamsville CUSD #15 explaining the Budget Levy Cycle

Presented by David Root Superintendent of Williamsville CUSD #15 explaining the Budget Levy Cycle

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    BudgetLevyCycle07 BudgetLevyCycle07 Presentation Transcript

    • BUDGET / LEVY CYCLE Williamsville C.U.S.D. #15 Dave Root, Superintendent October 22, 2007
    • Property Tax Assessment / Budgeting / Levy Cycle
      • How is property assessed?
      • When and how do you use that information to establish a levy?
      • How the tax rate is calculated and how that relates to the budget.
    • Budget / Levy Calendar
      • May -Amend the 2007-2008 budget
      • June -Finalize staffing, refine projected receipts and disbursements.
      • July -Provide 2008-2009 Preliminary Budget to Board of Education.
      • August -2008-2009 Tentative Budget approved for public display.
      • September -Hold Public Hearing on 2008-2009 Budget. - Adoption of the 2008-2009 Budget by the Board of Education
      • Oct. / Nov. -Provide Updated Financial Projections.
      • December -Hold Public Hearing / Adoption of 2008 Levy.
    • What is a school district budget?
      • Illinois law requires school districts to budget its income and expenses each year and to make the budget available for public inspection before final adoption.
      • The annual budget serves two major purposes:
      • Represents a plan for receiving and expending money.
      • Provides information necessary to determine the amount of school taxes that must be levied on property.
    • How is school income determined?
      • Four major factors determine the amount of money available: - Property Values - Tax Rates - State Appropriations - Pupil Enrollment
      • (ADA)
    • HISTORY OF E.A.V.’S 7.4% $112,500,579 2006 7.3% $104,711,089 2005 2.7% $97,613,426 2004 6.0% $95,028,615 2003 4.4% $89,650,329 2002 2.5% $85,883,370 2001 4.6% $83,790,557 2000 6.3% $80,100,328 1999 8.0% $75,356,984 1998 5.0% $69,770,772 1997
    • ESTIMATE OF 2007 E.A.V. 2007 $120,000,000 (Represents at least an 7-8% increase)
    • HISTORY OF TAX RATES YR EAV Ed OM TNs IMRF SS WC TORT FPS Spec. Ed Bonds Total 4.6643 4.7123 4.7534 4.7472 4.7763 4.7866 0.9138 0.9380 0.9548 0.9389 0.9459 0.9390 0.0402 0.0400 0.0400 0.0400 0.0400 0.0400 0.0510 0.0500 0.0500 0.0500 0.0500 0.0500 0.1254 0.1433 0.1537 0.1578 0.1673 0.1747 0.0471 0.0500 0.0500 0.0500 0.0500 0.0500 0.0209 0.0239 0.0256 0.0263 0.0279 0.0263 0.1464 0.1671 0.1793 0.1842 0.1952 0.1842 0.2007 0.2000 0.2000 0.2000 0.2000 0.2000 0.5017 0.5000 0.5000 0.5000 0.5000 0.5000 2.6171 2.6000 2.6000 2.6000 2.6000 2.6000             112,500,579 104,711,089 $97,613,426 $95,028,615 $89,650,329 $85,883,370             2006 2005 2004 2003 2002 2001
    • HISTORY OF ENROLLMENT
      • YEAR Enrollment
      • 2001 1236
      • 2002 1286
      • 2003 1276
      • 1298
      • 1368
      • 1395
      • 1368
      *A decrease in A.D.A. equals less G.S.A.
    • School District Funds
      • Major Operating Funds EDUCATIONAL FUND OPERATIONS / MAINTENANCE FUND TRANSPORTATION FUND
      • Special Purposes Funds BOND AND INTEREST FUND ILLINOIS MUNICIPAL RETIREMENT/SOCIAL SECURITY FUND WORKING CASH FUND SITE AND CONSTRUCTION/CAPITAL IMPROVEMENT FUND FIRE PREVENTION/LIFE SAFETY FUND RENT FUND
    • Sample Budget Calendar
      • March/April - Capital Outlay / Supply Budget Requests
      • May/June - Finalize staffing, refine projected revenues and expenditures.
      • July - Provide preliminary budget information to the Board of Education.
      • August - Tentative Budget approved for public display. - Hold Public Hearing on Budget.
      • Sept. - Adoption of Budget by Board of Education.
    • Revenue Source of Funds for Schools Statewide Average Williamsville Local 55% State 36% Federal 9% Local 58% State 41% Federal 1%
    • REVENUE BY FUND (Average) EDUCATION 79.9% BUILDING 9.8% TRANSPORTATION 6.3% IMRF 2.8% SAFETY 0.6% W/CASH 0.6%
    • EXPENDITURES BY FUND (Average) EDUCATION 80.7% BUILDING 9.5% TRANSPORTATION 4.9% IMRF 2.7% SAFETY 2.2%
    • REVENUE CONSTRAINTS - FIXED
      • Individual Fund Tax Rate Limits
      • Property Tax Limitation Act (Tax Cap)
      • General State Aid Formula
    • REVENUE FACTORS - VARIABLE
      • Student / User Fees
      • Tax Extensions within authorized limits
      • Bonds (Funding, Working Cash, etc.)
      • Tax Rate referendum question
    • Revenue Factors Affecting the Future
      • E.A.V. Growth
      • Inflation
      • Interest Rates
      • State Funding
      • Federal Funding
    • The Cumulative Effect
      • State Revenue Shortfall
      • Tax Caps
      • Property Reclassification
      • Growing Expenditures
    • State Revenue Shortfall
      • Unrestricted State Aid -General State Aid
      • -ADA Block Grant
      • Restricted State Aid (Categoricals) -Prorated/Elimination of funding *Special Education *Transportation *Bilingual *Gifted/Reading Improvement *Early Childhood
    • EXPENDITURE FACTORS - FIXED
      • Collective Bargaining Agreements - Salaries - Benefits - Class size
      • State / Federal Mandates
      • Debt Service Outstanding
    • EXPENDITURE FACTORS - VARIABLE
      • Personnel (staffing level)
      • Program Commitments/Standards - Technology - Drivers’ Education - Athletics - Electives - Activities - Graduation Requirements - Summer School - Alternative Schools - Advanced Placement
    • EXPENDITURE FACTORS - PROJECTED
      • Minimal / Moderate Inflation Growth (Salaries, Benefits, Purchased Salaries, Supplies, Capital Outlay)
      • Early Retirement Costs / Savings
      • Student Enrollment Growth / Decline
      • Program Mandates (state, federal)
      • Declining Fund Balances
    • PROPERTY TAXES
      • Property tax is the largest single tax in Illinois and is the major source of revenue for school districts.
      • The process of imposing the property tax has two distinct parts: 1) A value must be placed on property (assessment). 2) The tax is imposed on that value or as a percentage.
    • PROPERTY TAX BURDEN BY TYPE OF PROPERTY Averages for Central Illinois FARM 58.6% RESIDENTIAL 34% COMMERCIAL 5% RAILROAD 0.97% INDUSTRIAL 1.4%
    • PROPERTY VALUES
      • Illinois real property values and related taxes are established on a calendar-year basis . Property assessment for the 2007 calendar year provide the basis for property tax revenues distributed in calendar year 2008
      • State-directed equalization factors (multiplier adjustments) are designated to assure equal valuation treatment across Illinois’ 102 counties. Equalized Assessed Valuations (EAV) represent the taxable property base for schools as certified by the Illinois Department of Revenue.
    • PROPERTY TAX CYCLE
      • The property tax cycle extends over a two year period. During the first year, the property is assessed and the assessed value reflects the property value as of January 1 of that year. During the second year, the actual tax bills are paid (e.g. 2007 taxes are paid in 2008)
    • Property Tax Extensions by Taxing the District SCHOOLS 57% COUNTIES 11% MUNICIPALITIES 17% OTHER 15% AVERAGE
    • WHAT IS A LEVY?
      • Levy is the fundamental request by a school district for a certain amount of revenue to be generated by the property tax.
      • The formal request is sent to the county clerk.
      • County clerk calculates the necessary rate.
      • Each school district must issue its levy by the last Tuesday in December. This levy determines that year’s taxes, which are payable the following year.
    • TAX LEVY 2007 LEVY EXTENSION -------------------------------------------------------------------------------------------------------------------- = 2007 Tax Rate 2007 Equalized Assessed Valuation Example: District #15 (2007) = 5,247,364 = .046643 or $4.664 / $100 EAV 112,500,579
    • TRUTH IN TAXATION ACT
      • Provides taxpayers with the means to check excessive school district spending.
      • Requires taxing districts that plan to adopt a levy exceeding the property taxes extended for the previous year by more than 5% to publish a specified notice and hold a public hearing.
      • The notice must be a specific size, have a black border, and appear in a newspaper of general circulation.
    • Property Tax Extension Limitation Law (PTELL)
      • PTELL is designed to limit the increase in property tax extension (total taxes billed) for non-home rule taxing districts. Increase in property tax extensions are limited to the lessor of 5% or the increase in the national Consumer Price Index (CPI) for the year preceding the levy year. The limitation can be increased for a taxing body with voter approval.
      • PTELL does not “cap” either individual property tax bills or property assessments. Instead, it allows a taxing district a limited inflationary increase in tax extensions on existing property, plus an additional amount of new construction.
    • Property Tax Extension Limitation Law (PTELL)
      • CPI is used for all Urban Consumers published by the United States Department of Labor. – this is the rate we receive on existing property. ( www.stats.bls.gov/blshome )
      • Plus New property
    • LEVY RESTRICTIONS
      • 3.75% limiting rate on the 2007 tax extension over 2006 amount (tax cap). (Excludes Bond & Interest Fund and new construction).
      • Tax rate limit on individual funds.
    • LEVY / EXTENSION Levy : The amount that we ask for from the taxpayers needed to run the school district. Extension: The amount of money we actually receive Balloon Levy: Ask for larger percent levy to be sure to capture all available dollars for the school. Although this does not increase any tax rates, it assures us that we are not leaving money on the table for the school district.
    • ASSESSMENT (Apportionment of the Burden)
      • Assessment is the valuation of real estate for purposes of property taxation.
      • Illinois law requires real property to be assessed at 33 1/3% assessment rule. (Farmland is an exception to the 33 1/3% assessment rule. Farmland is assessed on its ability to produce income)
      • Who Assess Property? -Elected township assessors
    • ASSESSMENT When is Property Assessed?
      • All properties in Illinois must be reassessed every four years. County boards may organize assessment districts with one reassessed every year. HOW IS PROPERTY ASSESSED?
      • Property is assessed with respect to its value and ownership on January 1 of the assessment year.
    • BUDGET / LEVY CYCLE Questions please contact Dave Root, Superintendent [email_address] or 566-2014